Flexprice has announced a USD 1.5 million seed funding round led by Shastra VC, with participation from TDV Partners and Anupam Mittal, founder of People Group.
The company stated that the fresh capital will be used to accelerate expansion across the United States and Europe while building new AI-native finance products covering metering, revenue recognition, and financial reporting workflows.
Founded in late 2024 and headquartered in New Delhi with teams across San Francisco and Bengaluru, Flexprice focuses on open-source usage billing infrastructure for AI-native and API-first enterprises.
According to the company, it recorded six-fold revenue growth in the last quarter, while event processing volumes increased 20 times over the past year to more than 20 billion events per month.
The company said its infrastructure currently supports real-time billing for AI businesses through token consumption tracking, API calls, GPU-hour metering, and hybrid pricing models at enterprise scale.
Shubhendu Shishir, Head of Engineering, Simplismart, said, “If billing doesn’t work, we don’t make money. Flexprice lets us focus on the core business instead of building billing as a second product.”
The company stated that AI businesses are increasingly moving away from flat-rate subscription pricing towards usage-based and outcome-based pricing structures, creating operational complexity for traditional billing systems.
Avijeet Alagathi, Managing Partner, Shastra VC, said, “In our conversations with AI companies, one theme came up repeatedly: traditional billing systems are breaking under new AI business models. Software pricing is rapidly shifting from seat-based subscriptions to usage-based and increasingly outcome-based pricing, creating a level of complexity most existing infrastructure wasn’t designed to handle.”
He added, “What stood out about Flexprice was the strength of the engineering vision — an open-source, real-time billing platform purpose-built for modern AI products, while integrating cleanly into existing systems. The early traction reinforced how urgent and universal this need is.”
Flexprice said its platform supports multiple pricing models including pay-as-you-go, prepaid credits, volume tiers, seats, and hybrid pricing structures, while also integrating with payment gateways including Stripe, Adyen, and Razorpay.
Manish Choudhary, Chief Executive Officer, Flexprice, said, “Billing is the hardest layer to get right, and the most consequential when you get it wrong, so that’s where we started. But billing is just the foundation of a much larger stack that every software company runs on.”
He further added, “The bigger picture is full revenue automation: from the first usage event to the last dollar recognized, giving AI companies the infrastructure to experiment, iterate, and scale their monetization in real time without being held back by systems that were never built for them.”
According to the company, the global market for modern AI billing infrastructure is estimated at USD 4 billion and is projected to grow at a compound annual growth rate of 20 per cent.
Ujwal Sutaria, General Partner, TDV Partners, said, “We’re seeing a generational shift in how software is priced and delivered, driven by AI and usage-based models. Flexprice is building the foundational infrastructure required for this new paradigm.”
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